Q.23. Following are the balance Sheets of Raj Ltd. as on 31st March, 2013 and 31st March 2014:
 
Particulars 31.3.14 31.3.13
1. Equity and Liabilities    
Shareholder's Funds     
Share Capital 700000 400000
Reserves & Surplus -320000 -50000
Non-current Liabilities    
Long-term Borrowings: 9% debentures 400000 200000
Current Liabilities    
Trade Payables 150000 110000
Other: Current liabilities: Outstanding Expenses 20000 10000
Total 950000 670000
II. Assets    
Non-current Assets:    
Fixed Assets 500000 300000
Investments 140000 200000
Current Assets    
Inventories (Stock) 100000 50000
Trade Receviables 170000 100000
Cash and Cash Equivalents 40000 20000
Total  950000 670000

Additional Information:
Included in the fixed assets was a piece of machineiy costing 70,000 on which
depreciation charged was ‘40,000 and it was sold for 30,000.  During the year Rs. 1,40,000 depreciation was charged on fixed assets.
Prepare the Cash Flow Statement.

Dear Student,
 
  Cash Flow Statement
for the year ended March 31, 2014
  Particulars Amount
(Rs)
Amount
(Rs)
A Cash Flow from Operating Activities    
  Loss as per Statement of Profit and Loss (2,70,000) (2,70,000)
  Profit Before Taxation   (2,70,000)
  Items to be Added:    
  Depreciation 1,40,000  
  Interest on Debentures 18,000 1,58,000
  Operating Profit before Working Capital Adjustments   (1,12,000)
  Add: Decrease in CA & Increase in CL    
    Outstanding Expenses 10,000  
    Trade Payables 40,000  
  Less: Increase in CA & Decrease in CL    
          Debtors (70,000)  
          Inventories (50,000) (70,000)
  Net Cash Flows from Operating Activities   (1,82,000)
       
B Cash Flow from Investing Activities    
    Sale of Machinery 30,000  
    Purchase of Fixed Assets (3,70,000)  
    Sale on Investments 60,000 (2,80,000)
  Net Cash Used in Investing Activities   (2,80,000)
       
C Cash Flow from Financing Activities    
  Issue of Shares 3,00,000  
  Issue of Debentures 2,00,000  
  Interest on Debentures (18,000) 4,82,000
  Net Cash Flow from Financing Activities   4,82,000
D Net Increase or Decrease in Cash and Cash Equivalents   20,000
    Add: Cash and Cash Equivalent in the beginning of the period   20,000
  Cash and Cash Equivalents at the end of the period   40,000
 
Fixed Asset Account
Dr. Cr.
Particulars Amount
(Rs)
Particulars Amount
(Rs)
Balance b/d 3,00,000 Depreciation A/c 1,40,000
Bank A/c (Purchase- Bal. Fig.) 3,70,000 Bank A/c 30,000
    Balance c/d 5,00,000
  6,70,000   6,70,000

  • 6
Please find this answer

  • -3
Please find this answer

  • -1
What are you looking for?